The Trump administration is reportedly weighing the addition of more Chinese semiconductor companies to the U.S. export blacklist, a move that could escalate tensions with Beijing amid ongoing trade negotiations. According to the Financial Times, the U.S. Commerce Department has drafted plans to expand export restrictions to include ChangXin Memory Technologies (CXMT) and subsidiaries of Semiconductor Manufacturing International Corporation (SMIC) and Yangtze Memory Technologies Co. (YMTC).
Although SMIC and YMTC are already listed on the U.S. “entity list,” the proposed update would impose broader restrictions on their access to advanced American chip technology. This potential action reflects growing concerns in Washington over China’s ability to acquire sensitive U.S. technologies that could be repurposed for military use.
However, internal divisions within the administration may delay the decision. Some officials caution that expanding the blacklist now could undermine a recently established 90-day tariff truce reached in Geneva. The temporary halt in new tariffs was intended to create a conducive environment for broader trade agreements between the two nations.
National security advocates argue that current export regulations have allowed Chinese firms to exploit loopholes and gain access to dual-use technologies with potential defense applications. They are urging stricter controls to close those gaps and protect U.S. interests.
The deliberations come at a pivotal moment in U.S.-China relations, as both sides seek to balance economic cooperation with strategic competition. Further sanctions on China’s semiconductor sector could not only strain diplomatic talks but also impact global chip supply chains.
If enacted, the updated export blacklist would mark a significant escalation in the U.S. crackdown on China’s tech sector, highlighting the geopolitical stakes surrounding semiconductor dominance.